India's cotton production could be lower than initial estimates due to reduced cotton yield in Andhra Pradesh and Karnataka. The yield has been affected due to lack of irrigation in view of erratic power supply. Cotton production in Andhra Pradesh is likely to be at least 50 per cent lower.

Productivity in Maharashtra too has been affected due to dry weather during the crop's crucial growth period. There have been lower arrivals of cotton in markets across the country. One reason could be farmers are holding back due to lower prices. But the other reason could be a drop in production.

Cotton arrivals as of December 25, 2014, dropped to 88.10 lakh bales since the beginning of the current season on October 1 as against 117.89 lakh bales during the same period a year ago. Arrivals in Karnataka are down at 2.68 lakh bales compared to 3.62 lakh bales a year ago. Arrivals in Andhra Pradesh are lower at 13.04 lakh bales compared to 18.51 lakh bales a year ago. In Maharashtra, arrivals are down by nearly 50 per cent at 14.17 lakh bales.